AUD/USD Elliott wave count and Fibonacci levels - April 8, 2011

AUD/USD is developing impulse subwave C (colored magenta in the chart) within wave C of larger degree - colored royal blue in the chart. The former wave now has 3 subwaves - colored red in the chart. And subwave C is still developing. The targets of the upmove are Fibonacci expansions off 0.9709-1.0313-1.0204, 1.0204-1.0413-1.0285, 1.0285-1.0504-1.0408.

Resistances:

- 1.0543 = contracted objective point (COP)
- 1.0577 = COP
- 1.0623-27 = confluence area of expanded objective point (XOP) and objective point (OP)

If the price reverses down the immediate supports will be Fibonacci retracements of the wave up from 1.0408 - this wave is not developed yet.

Overbought/Oversold

Assuming that the medium term trend is up, it's preferable to look for longs when the Detrended Oscillator goes below the zero level (30-35 pips below the current prices) or gets into the oversold area (45-55 pips to go).

Read more on how to apply Fibonacci studies to calculate price targets.